Increased customer generation, technological advances, and broader competitive service offerings can lead to lower energy sales and, in turn, reductions in utility revenue. At the same time, the public interest dictates a low-carbon energy sector with a resilient grid that can withstand severe climate events. Energy regulators are tasked with the complex assignment of bringing all of these demands into balance, while being mindful of protecting all customers. At a meeting of the National Governors Association, Janine Migden-Ostrander explored utility business models and rate design options that help strike the balance between fairness, equity, and public policy objectives. She outlined three main principles of smart rate design to ensure all consumers have access to the grid at equitable rates. First, a customer should be allowed to connect to the grid for no more than the cost of connecting to the grid. Second, they should be responsible for grid costs only in proportion to how much and when they use the grid. Finally, customers delivering power to the grid should be paid full and fair value for that power. Ms. Migden-Ostrander recommends a time of use rate design combined with a critical peak period.